ACCC must choose well

Regarding ACCC chairman Rod Sims (“Spare the Rod, spoil the competition", AFR, December 5), the effectiveness of a regulator should not be measured by the number of court cases commenced.

The ACCC has extensive powers. When the chairman took office last year, there were suggestions that the ACCC would commence more court cases, target certain industries and test the boundaries of the law.

An ACCC investigation or prosecution is, however, a costly, time-consuming and stressful ordeal for the companies and individuals targeted. This is so even when the ACCC (or the court) ultimately accepts that there was no breach of the law. Overzealous regulation destroys reputations and creates significant costs for business. This has been illustrated recently in relation to another regulator (“How ASIC blew $30 million on Andrew Forrest", AFR, October 6).

Business is looking for the ACCC to take strong action whenever flagrant breaches of competition law hurt consumers and businesses who play by the rules. But the ACCC must pick the right cases to take to court, and not do so to win public approval by appearing tough.